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Fez Confectionery currently produces candy bars and is planning to expand its product line to include snack foods. The company already owns a manufacturing plant

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Fez Confectionery currently produces candy bars and is planning to expand its product line to include snack foods. The company already owns a manufacturing plant suitable for the new project, which costs them $355,000 to build eight years ago. The current book value of the plant is $220,000; however, a commercial real estate agent has informed the company that an outside buyer is interested in purchasing this plant would be willing to pay $415,000 for it It is now considering using the plant for the proposed project. However, the company needs to do some maintenance work on the plant which costs $114,000 before it can be used in the new project. In addition, there will be $40,800 spent on promoting the new product line. New equipment to manufacture the snack foods will cost $332,000 and the company has to pay $28,000 to have it delivered and installed. Interest expense associated with financing the purchase of the new equipment will be $16,400 per year. Required: A. Indicate the types of cash flow for the proposed project whether RELEVANT or IRRELEVANT. And also the AMOUNT of the cash flow for each transaction PLEASE TYPE THE WORD "RELEVANT" or "IRRELEVANT "CORRECTLY IN THE ANSWER AREA. Descriptions of cash flows Relevant or irrelevant Amount The acquisition cost of the plant building The book value of the plant building The market value of the plant building Lada MacBook wwwwwwwwwwwwwwwwwwwwwww it delivered and installed. Interest expense associated with financing the purchase of the new equipment will be $16,400 per year. Required: A. Indicate the types of cash flow for the proposed project whether RELEVANT or IRRELEVANT. And also the AMOUNT of the cash flow for each transaction. PLEASE TYPE THE WORD "RELEVANT" or "IRRELEVANT "CORRECTLY IN THE ANSWER AREA. Descriptions of cash flows Relevant or Irrelevant Amount The acquisition cost of the plant building The book value of the plant building The market value of the plant building Marketing expense Capital expenditure - equipment Delivery & installation Maintenance work Interest expense B. Based on your answer in A as above, what is the proper cash flow amount to be used as an initial investment when evaluating the proposed project? INITIAL INVESTMENT

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